M-Pesa is the global market leader among mobile money transfer services worldwide, and it appears it will soon constitute the Kenyan operator’s primary driver of non-voice revenue, according to a study by Citigroup Global Markets. Currently M-Pesa is responsible for 18 percent of Safaricom’s revenue, compared to 8 percent from mobile data. Fifty-six percent of the operator’s subscribers are M-Pesa users.
The huge gap between M-Pesa and the competition is unlikely to be closed anytime soon, given that its revenue market share is now 85 percent. As a revenue producer for Safaricom, it is far ahead of data, which indicates that in this market, low-income users place a far greater priority on mobile money than on the types of entertainment content that drive data use in more developed markets. As a major driver of the economy in Kenya and elsewhere in sub-Saharan African, mobile money is bound to remain a key source of strength for Safaricom.
The above item appeared in a recent issue of Tarifica's "The Story of The Week", a weekly report that analyzes noteworthy developments in the telecoms industry from around the world. For past issues or to learn more about The Story of The Week or to contact the Tarifica Research department: http://www.tarifica.com/contactus.aspx and Follow Tarifica on LinkedIn